A method, information processing system, and computer program product manage server placement of virtual machines in an operating environment. A mapping of each virtual machine in a plurality of virtual machines to at least one server in a set of servers is determined. The mapping substantially satisfies a set of primary constraints associated with the set of servers. A plurality of virtual machine clusters is created. Each virtual machine cluster includes a set of virtual machines from the plurality of virtual machines. A server placement of one virtual machine in a cluster is interchangeable with a server placement of another virtual machine in the same cluster while satisfying the set of primary constraints. A server placement of the set of virtual machines within each virtual machine on at least one mapped server is generated for each cluster. The server placement substantially satisfies a set of secondary constraints.